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Revenues from Contracts with Customers | 12 Months Ended
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Dec. 31, 2022
Revenue from Contract with Customer [Abstract] |
Revenues from Contracts with Customers | 23) Revenues from Contracts with Customers The Company reports revenues from contracts with customers pursuant to ASC No. 606, Revenue from Contracts with Customers. Contracts with Customers Information about Performance Obligations and Contract Balances The Company’s cemetery and mortuary segment sells a variety of goods and services to customers in both at-need and pre-need situations. Due to the timing of the fulfillment of the obligation, revenue is deferred until that obligation is fulfilled. The total contract liability for future obligations is included in deferred pre-need cemetery and mortuary contract revenues on the consolidated balance sheets and, as of December 31, 2022 and 2021, the balances were $16,226,836 and $14,508,022, respectively. The Company’s three types of future obligations are as follows: Pre-need Merchandise and Service Revenue: All pre-need merchandise and service revenue is deferred and the funds are placed in trust until the need arises, the merchandise is received or the service is performed. The trust is then relieved, and the revenue and commissions are recognized. As of December 31, 2022 and 2021, the balances were $15,289,901 and $13,722,348, respectively. At-need Specialty Merchandise Revenue: At-need specialty merchandise revenue consists of customizable merchandise ordered from a manufacturer such as markers and bases. When specialty merchandise is ordered, it can take time to manufacture and deliver the product. Revenue is deferred until the at-need merchandise is received. As of December 31, 2022 and 2021, the balances were $936,935 and $785,674, respectively. Deferred revenue for at-need specialty revenue is not placed in trust. Deferred Pre-need Land Revenue: Deferred pre-need revenue and corresponding commissions are deferred until 10% of the funds are received from the customer through regular monthly payments. As of December 31, 2022 and 2021, the balances were nil and nil, respectively. Deferred pre-need land revenue is not placed in trust. Complete payment of the contract does not constitute fulfillment of the performance obligation. Goods or services are deferred until such time the service is performed or merchandise is received. Pre-need contracts are required to be paid in full prior to a customer using a good or service from a pre-need contract. Goods and services from pre-need contracts can be transferred when paid in full from one owner to another. In such cases, the Company will act as an agent in transferring the requested goods and services. A transfer of goods and services does not fulfill an obligation and revenue remains deferred. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 23) Revenues from Contracts with Customers (Continued) The opening and closing balances of the Company’s receivables, contract assets and contract liabilities are as follows: Schedule of Opening and Closing Balances of Receivables, Contract Assets and Contract Liabilities
|  | Contract Balances |
|  | Receivables (1) |  |  | Contract Asset |  |  | Contract Liability |
Opening (1/1/2022) |  | $ | 5,298,636 |  |  | $ | - |  |  | $ | 14,508,022 |
Closing (12/31/2022) |  |  | 5,392,779 |  |  |  | - |  |  |  | 16,226,836 |
Increase/(decrease) |  |  | 94,143 |  |  |  | - |  |  |  | 1,718,814 |
|  | Contract Balances |
|  | Receivables (1) |  |  | Contract Asset |  |  | Contract Liability |
Opening (1/1/2021) |  | $ | 4,119,988 |  |  | $ | - |  |  | $ | 13,080,179 |
Closing (12/31/2021) |  |  | 5,298,636 |  |  |  | - |  |  |  | 14,508,022 |
Increase/(decrease) |  |  | 1,178,648 |  |  |  | - |  |  |  | 1,427,843 |
(1) |  | Included in Receivables, net on the consolidated balance sheets
The following table disaggregates the opening and closing balances of the Company’s contract balances. Schedule of Opening and Closing Balances of the Assets and Liabilities
|  | Contract Balances |
|  | Contract Asset |  |  | Contract Liability |
Pre-need merchandise and services |  | $ | - |  |  | $ | 13,722,348 |
At-need specialty merchandise |  |  | - |  |  |  | 785,674 |
Pre-need land sales |  |  | - |  |  |  | - |
Opening (1/1/2022) |  | $ | - |  |  | $ | 14,508,022 |
Pre-need merchandise and services |  | $ | - |  |  | $ | 15,289,901 |
At-need specialty merchandise |  |  | - |  |  |  | 936,935 |
Pre-need land sales |  |  | - |  |  |  | - |
Closing (12/31/2022) |  | $ | - |  |  | $ | 16,226,836 |
|  | Contract Balances |
|  | Contract Asset |  |  | Contract Liability |
Pre-need merchandise and services |  | $ | - |  |  | $ | 12,545,753 |
At-need specialty merchandise |  |  | - |  |  |  | 534,426 |
Pre-need land sales |  |  | - |  |  |  | - |
Opening (1/1/2021) |  | $ | - |  |  | $ | 13,080,179 |
Pre-need merchandise and services |  | $ | - |  |  | $ | 13,722,348 |
At-need specialty merchandise |  |  | - |  |  |  | 785,674 |
Pre-need land sales |  |  | - |  |  |  | - |
Closing (12/31/2021) |  | $ | - |  |  | $ | 14,508,022 |
SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 23) Revenues from Contracts with Customers (Continued) The amount of revenue recognized for the years ended December 31, 2022 and 2021 that was included in the opening contract liability balance was $4,588,290 and $4,528,646, respectively. The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment. Disaggregation of Revenue The following table disaggregates revenue for the Company’s cemetery and mortuary contracts. Schedule of Revenues of the Cemetery and Mortuary Contracts
|  | 2022 |  |  | 2021 |
|  | Years Ended December 31 |
|  | 2022 |  |  | 2021 |
Major goods/service lines |  |  |  |  |  |  |  |
At-need |  | $ | 21,283,237 |  |  | $ | 16,220,541 |
Pre-need |  |  | 5,710,618 |  |  |  | 7,776,772 |
Net mortuary and cemetery sales |  | $ | 26,993,855 |  |  | $ | 23,997,313 |
Timing of Revenue Recognition |  |  |  |  |  |  |  |
Goods transferred at a point in time |  | $ | 16,412,963 |  |  | $ | 16,793,439 |
Services transferred at a point in time |  |  | 10,580,892 |  |  |  | 7,203,874 |
Net mortuary and cemetery sales |  | $ | 26,993,855 |  |  | $ | 23,997,313 |
Significant Judgments and Estimates The Company’s cemetery and mortuary segment recognizes revenue on future performance obligations when goods are delivered and when services are performed and is not determined by the terms or payments of the contract as long as any good or service is paid in full prior to delivery. Prices are determined based on the market at the time a contract is created. Goods or services are not partially completed. There are no significant judgements, estimations or allocation methods when revenue should be recognized. Practical Expedients The Company has not elected to use any of the practical expedients under ASC 606. Contract Costs The Company’s cemetery and mortuary segment defers certain costs associated with obtaining a contract on future obligations. Pre-need Merchandise and Service Revenue: Pre-need merchandise and service revenues are deferred until the goods or services are delivered. Recognition can be years until the obligations are satisfied. Commissions and other costs are capitalized and deferred until the obligation is satisfied. Other costs include rent on pre-need offices and training rooms, and call center costs. Costs that are allocated based on a percentage include family service advisor compensation, bonuses, utilities and supplies that are all used to procure a pre-need sale. At-need Specialty Merchandise Revenue: At-need specialty merchandise is ordered from a third-party manufacturer. Generally, at-need specialty merchandise is ordered and received within 90 days of order. These orders are also short-term in nature and are deferred until the product is received from the manufacturer and the obligation is satisfied. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2022 and 2021 23) Revenues from Contracts with Customers (Continued) Deferred Pre-need Land Revenue: Revenue is recognized on pre-need land sales when the customer has paid at least 10% toward the land price. In cases where customers pay less than 10% the revenue and associated commissions are deferred until such time when 10% of the contract price is received. The following table disaggregates contract costs that are included in deferred policy and pre-need contract acquisition costs on the consolidated balances sheets. Reconciliation of Revenues from Cemetery and mortuary contracts to Business Segment Information
|  | 2022 |  |  | 2021 |
|  | Years Ended December 31 |
|  | 2022 |  |  | 2021 |
Pre-need merchandise and services |  | $ | 3,780,173 |  |  | $ | 3,688,579 |
At-need specialty merchandise |  |  | 35,371 |  |  |  | 29,688 |
Pre-need land sales |  |  | - |  |  |  | - |
Deferred policy and pre-need contract acquisition costs |  | $ | 3,815,544 |  |  | $ | 3,718,267 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI https://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
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